The following direct labor information applies to Summit Tech Co. for the month of April: • Actual labor rate = $12.50 per hour • Actual hours worked = 12,000 hours • • Standard labor rate = $12.00 per hour Standard hours allowed = 11,200 hours Calculate the following: 1. Labor rate variance 2. Labor efficiency variance 3. Total labor variance
The following direct labor information applies to Summit Tech Co. for the month of April: • Actual labor rate = $12.50 per hour • Actual hours worked = 12,000 hours • • Standard labor rate = $12.00 per hour Standard hours allowed = 11,200 hours Calculate the following: 1. Labor rate variance 2. Labor efficiency variance 3. Total labor variance
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PA: Ellis Companys labor information for September is as follows: A. Compute the standard direct labor...
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Transcribed Image Text:The following direct labor information applies to Summit Tech Co. for the
month of April:
•
Actual labor rate = $12.50 per hour
• Actual hours worked = 12,000 hours
•
•
Standard labor rate = $12.00 per hour
Standard hours allowed = 11,200 hours
Calculate the following:
1. Labor rate variance
2. Labor efficiency variance
3. Total labor variance
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